Net sales

EACO Corporation Announces Record Full Year Net Sales and Record 4th Quarter Net Sales | Business and finance

ANAHEIM, Calif.–(BUSINESS WIRE)–June 30, 2022–

EACO Corporation (OTCMKTS: EACO) today announced results for its fiscal year ended August 31, 2021.

Net sales, net income and earnings per share were as follows for the year ended August 31, 2021 (in thousands of dollars, except per share information):

Quarter ended August 31

%

2021

2020

To change

(unaudited)

(unaudited)

Net sales

$66,132

$57,454

15.1%

Net revenue

$3,062

$1,523

101.1%

Basic and diluted earnings per common share

$0.63

$0.31

103.2%

Year ended August 31

%

2021

2020*

To change

(unaudited)

Net sales

$237,962

$225,245

5.6%

Net revenue

$8,387

$7,793

6.6%

Basic and diluted earnings per common share

$1.71

$1.59

7.5%

* Taken from the company’s audited financial statements included in its Form 10-K for the fiscal year ended August 31, 2020 filed with the United States Securities and Exchange Commission on November 30, 2020.

The Company had 342 sales employees as of August 31, 2021, a decrease of 31 or 8.3% from the prior year quarter. The Company’s sales force is divided into sales teams (SFTs). The Company had 100 SFTs as of August 31, 2021, an increase of 5 from the prior year quarter. Management expects continued growth in our and SFT’s workforce in fiscal 2021. The Company believes it continues to gain market share through its local presence business model.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

All statements in this press release that are not entirely historical and factual in nature, including, without limitation, statements relating to the expansion of our workforce and our future growth, are forward-looking statements. These forward-looking statements are based on our current expectations and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, our ability to hire and retain additional qualified employees, our ability to open additional sales offices and market acceptance of our products, price and availability. of our products, the success of our sales and marketing programs, and the impact of products offered by our competitors from time to time. In addition to these and any other factors mentioned elsewhere in this press release, the reader should also refer to the factors, uncertainties or risks identified in EACO’s most recent Form 10-K and all subsequent reports on Form 10. -Q that we filed with the second. The forward-looking statements included in this release speak only as of the date hereof, and EACO undertakes no obligation to update such forward-looking statements to reflect subsequent events or circumstances.

EACO Corporation and its subsidiaries

Condensed consolidated balance sheets

(in thousands, except shared information)

(unaudited)

August 31,

August 31,

2021

2020*

ASSETS

Current assets:

Cash and cash equivalents

$

4,455

$

6,079

Restricted cash

ten

2,916

Trade receivables, net

33,929

29,667

Inventory, net

40,448

39,545

Negotiable securities, trading

3,741

1,368

Prepaid expenses and other current assets

6,780

5,094

Total current assets

89,363

84,669

Tangible capital assets and leasehold improvements, net

8,269

8,848

Operating lease right-of-use assets

11,084

12,810

Other assets, net

1,669

1,424

Total assets

$

110,385

$

107,751

LIABILITIES AND EQUITY

Current liabilities:

Accounts Payable

$

16,413

$

16,535

Accrued expenses and other current liabilities

10,964

6,632

Liability for short sales of trading securities

2,916

Current portion of operating lease debts

3,096

2,653

Portion of long-term debt

113

5,100

Total current liabilities

30,586

33,836

Non-current liabilities:

long-term debt

4,585

4,807

Operating lease debts

8,092

10,289

Total responsibilities

43,263

48,932

Commitments and contingencies

Equity:

Convertible preferred stock, par value $0.01 per share; 10,000,000 shares authorized; 36,000 shares outstanding (liquidation value $900)

1

1

Common shares, par value of $0.01 per share; 8,000,000 shares authorized; 4,861,590 shares outstanding

49

49

Premium

12,378

12,378

Accumulated other comprehensive income

780

788

Retained earnings

53,914

45,603

Total equity

67 122

58,819

Total liabilities and equity

$

110,385

$

107,751

* Taken from the company’s audited financial statements included in its Form 10-K for the fiscal year ended August 31, 2020 filed with the United States Securities and Exchange Commission on November 30, 2020.

EACO Corporation and its subsidiaries

Condensed consolidated income statements

(in thousands, except for share and per share information)

(unaudited)

Three months completed
August 31,

Year ended
August 31,

2021

2020*

2021

2020*

Revenue

$

66 132

$

57,454

$

237,962

$

225 245

Revenue cost

51,673

42,626

177 177

163,868

Gross margin

14,459

14,828

60,785

61,377

Operating costs :

Selling, general and administrative expenses

10,051

12,929

48,072

50,936

Income from operations

4,408

1,899

12,713

10,441

Other (expenses) income:

Net gain (loss) on trading securities

56

137

(807

)

912

Loss on sale of property

(130

)

Interest and other expenses

(52

)

(32

)

(226

)

(256

)

Other income (expenses), net

4

105

(1,033

)

526

income before taxes

4,412

2004

11,680

10,967

Provision for income taxes

1,350

481

3,293

3,174

Net revenue

3,062

1,523

8,387

7,793

Cumulative Preferred Share Dividend

(19

)

(19

)

(76

)

(76

)

Net income attributable to common shareholders

$

3,043

$

1,504

$

8,311

$

7,717

Basic and diluted earnings per common share:

$

0.63

$

0.31

$

1.71

$

1.59

Basic and diluted common weighted average
outstanding shares

4,861,590

4,861,590

4,861,590

4,861,590

* Taken from the company’s audited financial statements included in its Form 10-K for the fiscal year ended August 31, 2020 filed with the United States Securities and Exchange Commission on November 30, 2020.

EACO Corporation and its subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Year ended
August 31,

2021

2020*

Operating activities:

Net revenue

$

8,387

$

7,793

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization

1,525

1,224

Bad Debt Expenses

89

72

Loss on sale of real estate

130

Net gain on trading securities

807

(912

)

(Increase) decrease by:

Receivables

(4,351

)

1,916

Inventory

(903

)

(2,286

)

Prepaid expenses and other assets

(1,950

)

(346

)

Operating lease right-of-use assets

1,735

(11,512

)

Accounts Payable

901

(3,275

)

Accrued expenses and other current liabilities

4,332

(1,665

)

Operating lease debts

(1,754

)

11,644

Net cash provided by (used in) operating activities

8,818

2,783

Investing activities:

Purchase of property, equipment and leasehold improvements

(946

)

(6,705

)

Proceeds from the sale of real estate

7,075

Sale of securities, trading

(3,180

)

1,417

Net change in liabilities for short sales of trading securities

(2,916

)

2,261

Net cash provided by (used in) investing activities

(7,042

)

4,048

Fundraising activities:

(Payments) borrowings under revolving credit facility, net

(5,100

)

(1,014

)

Construction loan loans

4,448

Repayments on long-term debt

(109

)

(5,125

)

Preferred stock dividend

(76

)

(76

)

overdraft

(1,023

)

(1,328

)

Net cash (used in) provided by financing activities

(6,308

)

(3,095

)

Effect of changes in exchange rates on cash and cash equivalents

(8

)

(88

)

Net increase in cash, cash equivalents and restricted cash

(4,540

)

3,648

Cash, cash equivalents and restricted cash – beginning of period

8,995

5,347

Cash, cash equivalents and restricted cash – end of period

$

4,455

$

8,995

Additional cash flow information:

Money paid for interest

$

227

$

291

Cash paid for income taxes

$

2,780

$

3,405

* Taken from the company’s audited financial statements included in its Form 10-K for the fiscal year ended August 31, 2020 filed with the United States Securities and Exchange Commission on November 30, 2020

CONTACT: Michael Narikawa

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: CONSUMER ELECTRONICS HARDWARE TECHNOLOGY

Copyright BusinessWire 2022.

PUBLISHED: 06/30/2022 08:59 AM/DISC: 06/30/2022 08:59 AM

Copyright BusinessWire 2022.